Chinese consumers are trading up to more expensive food and drink brands to guarantee safety and better quality, finds a new report.
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The trend is being seen across all product categories, say authors at the Boston Consulting Group, but particularly in areas like baby foods and dairy.
“We found that more than half of Chinese consumers would trade up for baby food and dairy products – partly because of recent concerns about the danger of inferior products – whereas less than one-third would trade up for fast food, soft drinks, snacks and liquor,” said the report.
The survey of more than 4,000 consumers in 13 cities found that Chinese of all ages and all income levels are trading up, driven by the rapid rise in earnings. The trend is even stronger in China than in Western Europe or the US.
Chinese consumers also put more faith in brand names compared with Western consumers, although usually for practical rather than emotional reasons.
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By GlobalData“A well-known brand in food ensures safety and nutritional value.”
